Correlation Between Calamos Convertible and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Munivest Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Calamos Convertible and Munivest Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Convertible Opportunities and Munivest Fund, you can compare the effects of market volatilities on Calamos Convertible and Munivest Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Calamos Convertible with a short position of Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Munivest Fund.
Diversification Opportunities for Calamos Convertible and Munivest Fund
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Munivest is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible Opportunit and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund and Calamos Convertible is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Calamos Convertible Opportunities are associated (or correlated) with Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Munivest Fund go up and down completely randomly.
Pair Corralation between Calamos Convertible and Munivest Fund
Considering the 90-day investment horizon Calamos Convertible Opportunities is expected to generate 1.36 times more return on investment than Munivest Fund. However, Calamos Convertible is 1.36 times more volatile than Munivest Fund. It trades about 0.1 of its potential returns per unit of risk. Munivest Fund is currently generating about 0.05 per unit of risk. If you would invest 1,190 in Calamos Convertible Opportunities on September 14, 2024 and sell it today you would earn a total of 21.00 from holding Calamos Convertible Opportunities or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Convertible Opportunit vs. Munivest Fund
Performance |
| Timeline |
| Calamos Convertible |
| Munivest Fund |
Calamos Convertible and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Munivest Fund
The main advantage of trading using opposite Calamos Convertible and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Munivest Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Munivest Fund will offset losses from the drop in Munivest Fund's long position.| Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity |
| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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